As you go deeper into the entrepreneurial and professional working domain, you’ll come across two key terms that are widely used by companies and their representatives. Both terms have different mechanics but follow a common ideology. These terms are Objectives and Key Results (OKRs) framework and Entrepreneurial Operating System (EOS). There are leading companies like Profit.co that are building smart solutions such as OKR tracking software to help you boost your business functionality.
Both OKRs and EOS are goal management systems but the basic difference is that the prior one is universal while the latter is tailored for entrepreneurs based on their vision, cohesion, and teamwork.They hold great value in defining any business’s success and to understand how important it is to know the essence of these terms as they differ from each other even being ideologically the same.
Both frameworks can be seamlessly used together to build, sustain, and scale your business. Apart from all these, there are still many differences between EOS and OKR goal-setting techniques.
What is EOS?
Entrepreneurial Operating System is a lean strategy that is committed to identifying targets and ensures a smoother workflow while saving you a lot of time. For example, consider a scenario in which you are the manager for airplane safety maintenance. Having a labeled EOS procedure in place with certain pre-set milestones to achieve, you can increase productivity and decrease the high-level costs associated with wasted time by making sure that all flights leave on time.
What are OKRs?
OKRs comprise an objective i.e. a clearly defined goal and one or more key results which are specific measures used to track the achievement of that particular goal. The motive behind setting OKRs is to define how objectives can be achieved through concrete, specific and measurable actions. In short, Objectives and Key Results comprise a framework that defines and tracks all the objectives associated with a task and their outcomes. Leading companies like Profit.co offer the best OKR tracking software.
What are the main differences between EOS and OKRs?
EOS and OKRs differ from each other in 3 key areas:
- 1. Approach: It is more of an operating system vs. a framework kind of comparison. EOS is specifically designed to act as a complete business “operating system” with various unique tools. These tools include L10 meetings which are weekly sessions conducted for company leadership with an aim to centralize the focus on outstanding problems or implementers who are nothing but trained EOS consultants. These EOS tools are designed to provide additional in-depth business instructions in the areas of both people and processes alike.
On the other hand, OKRs do not offer a counterpart to some of the elements within the EOS toolbox. Instead, they are equipped with the unique ability that supplements an operating system or framework and serves as a stand-alone goal management strategy.
- Timeframes: In comparison with the EOS, OKRs offer a more flexible time frame i.e. you can define the objectives quarterly, annually, monthly, or at your convenience. But if we talk about EOS, every core element of the operating system process has a defined time table with quarterly and annual sessions known as traction along with a ten-year target. If you are able to achieve an objective successfully, you’ll get an evident and clear value related to the mission.
- Audience: Both frameworks i.e. OKRs and EOS can be used across various industries. EOS primarily works to serve business leaders and entrepreneurs. The EOS process focuses on specific business models but OKRs are universal which means they work well for everyone including entrepreneurs, software engineers, non-profit leaders, and freelancers. OKRs are not only limited to organizational or team goals but they can be adopted for personal goals as well. Try OKR tracking software solutions from Profit to understand it better.
Apart from all the differences as discussed above, OKRs compliment EOS in many ways since both of them have the same base i.e. common ideology. These frameworks depend on goal prioritization and time-bound metrics. OKRs can easily be implemented within broader frameworks including EOS as there are many overlapping core elements in both processes and because of the malleable and lightweight nature of OKRs.
These frameworks help teams define the ultimate mission and overall objective along with the ways and time frame to accomplish the same. They bring endless opportunities to leading teams using which they can combine both the frameworks and can execute their goals and priorities.
For instance, there is one element in the EOS framework known as “Rocks” which is a defined set of objectives that assists a team by reflecting its 3–7 most important priorities with a quarterly focus. These rocks can easily be formatted using the OKR formula which helps you define 5-7 objectives, 3-4 measurables and time-bound key results. OKRs can be charted to better align the goals and for streamlining the process of reviewing them. Read more about OKR tracking software and its benefits on Profit’s website.
Final Thoughts
Disciplined thinking at the top with strong leaders who actively invest their time and energy in choosing things that make a difference is the way to an effective goal-setting system. The EOS comes with a lot of layers and elements which in integration with OKRs can open gates to numerous opportunities to be unfolded into the framework. For dedication, creativity, and strategic goal setting, organized priorities are required for companies, industries, and teams to evolve and grow sustainably. No framework is one-size-fits-all but they can be customized to fit the unique needs of your company or organization and can be made to work for you with proper alignment towards your company’s goals.
Review your team’s alignment with Profit’s OKR tracking software that facilitates you with a hierarchical view of how your team’s goals are aligned with your objectives and key results. Our solutions offer an alignment score that sets our goal management software apart from the crowd and gives you a clear picture of the alignment of your team corresponding to your company’s OKRs.